Financial Markets and Financial Valuation (2235.YR.013016.1)

General information

Type:	OPT	Curs:	3	Period:	S semester
ECTS Credits:	6 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 3	Lydia Ros Frizón	Economía, Finanzas y Contabilidad	ENG

Basic knowledge in Accounting & Financial Analysis

Basic knowledge in Accounting & Financial Analysis

For the students of this program, it is essential to be able to identify opportunities and threats for the creation of value in the company; know the different models for measuring value, understanding their advantages and limitations and being able to apply them to the selection of investments and resources for the company, identifying the contribution of Financial Management to the creation of value for the shareholder.

After taking this course, students should be able to:
· Understand the main points for the creation of value for the shareholder.
· Model and structure skills in such a way that they are capable of applying them to capital budgeting (investment selection) processes and company valuation

1. 1. Block 1: Long-Term Financial Planning Financial Balance Sheet & Financial Analysis Balance sheet reorganization for valuation Financial Planning

2. 2. Block 2: Capital Budgeting Financial Mathematics Free Cash Flow to the firm (FCFF) Capital Budgeting methods: Payback Net Present Value (NPV) Internal Rate of Return (IRR) Advantages and disadvantages of the methods Modified Internal Rate of Return (MIRR) Free Cash Flow to Equity (FCFE)

3. 3. Block 3: Cost of Capital Weighted Average Cost of Capital (WACC) Beta Asset & Beta Equity CAPM & Cost of Equity Cost of Debt & Bonds Valuation Optimal Financial Structure

4. 4. Block 4: Company Valuation Value versus Price Valuation Methods: Discounted Cash Flow valuation Dividends' valuation Multiples Enterprise Value & Equity Value

The course has been designed on three levels in order to promote understanding and the implementation of the basic concepts. The syllabus has therefore been designed to include:
1. Conceptual level: Concepts are formally presented and then applied by means of examples. In order to do so, students will be provided with materials that are used in class to develop each subject.
2. Self-learning level: Students will be given reading assignments on both conceptual and practical contents which will provide them with in depth knowledge of the topics that are covered in class.
3. Relational or group level: The course makes use of the case study methodology whereby students working in groups can analyze, propose and put forward solutions to the cases they have been assigned.

To facilitate the learning process, new materials have been added to the subject's website, which will be continuously adapted according to needs:
· Short subtitled videos with basic concepts
· Slides adapted to facilitate the monitoring of these videos
· Simple examples and solution templates that help the student's autonomous work

Throughout the course the solutions to the exercises and cases carried out will be uploaded.

All regular sessions will last two and a half hours. In lecture sessions, we will focus on the content of the videos that the student should have previously seen on the general content website. In practice sessions, students should apply these concepts to cases.

ASSESSMENT BREAKDOWN

Brealey, Richard; Stewart Myers, Franklin Allen
Principles of Corporate Finance
Publisher: McGraw-Hill Education

Ross, Stephen A.; Westerfield, Randolph W.; Jaffe, Jeffrey; Jordan, Bradford
Corporate Finance
Publisher: McGraw-Hill Education

Berk, Jonathan & Peter De Marzo:
Corporate Finance. Global Edition,
Ed. Pearson

DAMODARAN: Damodaran on Valuation, Wiley, 1994.

Group	Teacher	Department
Year 3	Lydia Ros Frizón	Economía, Finanzas y Contabilidad